Dowlis Corporate Solutions plc
28 February 2006
Date: 28th February 2006
On behalf of: Dowlis Corporate Solutions plc ('the Group' or 'Dowlis')
Embargoed: 0700hrs
Dowlis Corporate Solutions plc
Acquisition of Ross Promotional Products Ltd
Dowlis Corporate Solutions plc, the marketing solutions group, is pleased to
announce today that its subsidiary Dowlis Corporate Solutions (UK) Limited has
acquired the entire issued share capital of Ross Promotional Products Ltd
('Ross'), a Glasgow-based promotional gift company, for £825,000.
The consideration will be paid £725,000 in cash and 210,526 ordinary shares in
Dowlis, expected to be admitted to trading on 3rd March 2006.
Turnover for Ross for the 2005 financial year was £1.81m (2004: £1.39m) with a
profit before tax of £0.28m (2004: £0.18m). Net asset valuation of Ross was
£0.26m, including cash of £0.265m.
Commenting on the acquisition, Martin Varley, the Group's Chief Executive, said:
'Today's acquisition supports the Group's strategy for expansion in the UK and I
am delighted to be able to welcome The Ross team into the Group. There are
strong synergies between the existing Dowlis businesses and Ross, in particular
the transaction gives the Group a Scottish base from which to serve the
increasing client base in Scotland . The Ross team share our desire for quality,
customer service and innovation and I am confident that customers from both
companies will benefit from the combined resources.'
- ENDS -
Enquiries:
Dowlis Corporate Solutions plc 0870 224 6677
Martin Varley (Chief Executive) 07775 848 252
Redleaf Communications
Emma Kane/Miranda Good 020 7955 1410
Corporate Synergy PLC
Rhodri Cruwys 020 7448 4450
Zeus Capital
Alex Clarkson 0161 831 1512
Notes to Editors:
• Publication quality photographs are available via Redleaf.
• Dowlis has an experienced Board which comprises: Colin Cooke, Chairman, who
has 21 years' experience as a public company director; Martin Varley, Chief
Executive Officer, who has 17 years' experience in the promotional
merchandise industry and has gained an extensive knowledge of the supply
and distribution sectors of the market; David Gray, Finance Director,
formerly finance director of Gowrings PLC for 10 years; and, Keith Willis,
Non Executive Director, who recently received a lifetime achievement award
from PROMOTA in recognition of his 30 years' contribution to the industry.
• It is estimated that the annual UK market for promotional merchandise is £1
billion (source: PROMOTA), which comprises approximately 2,000
distributors supported by 600 UK based suppliers of a wide range of
products and services.
• The Group's maiden set of results are scheduled for announcement in March
2006
• The Group currently has four primary sales channels:
Promotional Products - the Directors believe Dowlis is the second largest
distributor of promotional products in the UK. It sources products from around
the World which are then personalised in accordance with the client's brand and
design guidelines in support of their wider marketing campaigns.
Trade OnlyTM - suppliers to independent distributors via an annual catalogue,
exhibition and website. Trade OnlyTM receives orders from approximately 25 per
cent of the UK's distributors who access the Trade OnlyTM range which features
600 products all of which are branded to the distributors' specification.
Information Services - a bespoke, industry specific website that contains
detailed information on over 1,000 products including full details of the
supplier and also detailed product information. Revenue is generated from
suppliers wishing to be featured on the website.
Dowlis Communications - a design agency based in Manchester, providing a range
of services which cover all aspects of design and marketing, including print and
brochure production, media planning and buying. It is expected that Dowlis
Communications will provide the platform for a number of potential additional
services that can be added to the Group's offering as the strategy to focus on
marketing services is developed.
The Group's offering is underpinned by its investment in software and
information technology. Its bespoke sales order processing system and product
database was carefully designed to complement the strategy of the Group. The
Directors believe that it will provide the Group with a competitive advantage
over others in the industry.
This information is provided by RNS
The company news service from the London Stock Exchange
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